Total Surplus with a Tax Is Equal to

question 244

Multiple Choice

Total surplus with a tax is equal to

• A)consumer surplus plus producer surplus.
• B)consumer surplus minus producer surplus.
• C)consumer surplus plus producer surplus minus tax revenue.
• D)consumer surplus plus producer surplus plus tax revenue.

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Definitions:

Import Tariff

A tax imposed by a government on goods brought into the country, aimed at making imported goods more expensive than domestic products.

Export Tariff

A tax imposed by a government on goods being exported from a country, often used to regulate trade balances.

Free Trade

The unrestricted buying and selling of goods and services between countries without the imposition of tariffs, quotas, or other restrictions.

Domestic Producers

Companies or individuals that manufacture or produce goods and services within their home country, as opposed to importing them from abroad.